In the litigation landscape, understanding when a cause of action accrues for Statute of Limitations purposes is imperative. However, clarity on this issue was brought to light in the recent case of Bennett v. Ohio Nat’l Life Assur. Corp., 92 Cal. App. 5th 723. The California Court of Appeal offered insights on when the statute of limitations runs for a disability insurance claim.
As per the case, the court held that the statute of limitations for a disability claim did not commence until all of the elements of the cause of action were complete, inclusive of damages. As reported by Sheppard Mullin Richter & Hampton LLP, this meant that in the Bennett case, the statute of limitations did not begin at the time of the denial, but rather, years later when Ohio National ceased making disability payments.
This significant ruling contradicts the common perception that the clock for statute of limitations commences ticking at the time of denial. It underscores the importance of ensuring that every element of the cause of action is complete before considering the statute of limitations to have started.
While this ruling provides clarity for disability insurance claims, legal professionals must remain vigilant in analyzing how it may impact other insurance claims in the future. With laws and interpretations continually evolving, staying informed is essential for effective legal practice.